Dynamic AX: "Is your company really ready for BI?"

#AXUGSummit | #INreno15

#AXUGSummit

ARE YOU REALLY READY FOR BI?

Brandon Kirby, Vice President Technology

Jeremy Kingry, BI Practice Lead

#AXUGSummit | #INreno15 3

Gain a competitive advantage by making better decisions– Increase Revenue– Reduce Cost – Reduce Risk

Employee satisfaction = more productive employees – Reduction of pointless data manipulation – Millennial expectations – Recruiting from larger organizations

WHY BI?


20% of your customers generate 80% of your profit. – Who are they?– What are they buying? Unique products?

What customers aren’t worth keeping? Create a competitive sales team! Cross Sales Analysis – Shopping Basket Analysis

HOW DO YOU INCREASE SALES WITH BI?



SHOPPING BASKET ANALYSIS


SALES REP RANKING


DIRTY 30 LIST


Better utilization of time Shutting down legacy systems Reducing inventory Effective negotiation with your vendors Identifying inefficiencies in your supply chain Being proactive vs. reactive with scheduled alerts

REDUCE COST


ALERTING


Extract Data “Blend” any Data Types

QAD / Progress

Query/Analysis Get Information Out “Bind” New Data Quickly

Budget / Excel

E-Commerce

Production / Access

EDWWeb Users

SUNSET LEGACY SYSTEMS


M&A Analysis Regulatory / Audit Reporting Data Quality Controls Predictive Problem Analysis Fraud Detection Automate Documentation

DECREASE RISK


DEFINING A PROJECT


GOAL: Document processes, gaps and provide transparency Executive Management Interviews Mid-Level Interviews Develop Questionnaire

– Which reports do you look at first thing in the morning?– What information would you use frequently if it was easier to get to it?

STAFF INTERVIEWS



Identify Executive Sponsor – C-Level – Consider their former role/job– Tenure at the company– What’s the personal win?

Develop departmental coaches Identify key influencers

BUY IN – INTERVIEW PROCESS


ROI = $ Process Improvement + $Cost Avoidance$Labor (IT, Bus) + $Cap (HD,SW)

ROI


INTERVIEW QUESTIONING TECHNIQUES


BUSINESS PROBLEM/OPPORTUNITY

“We have too many missed orders.”

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What factors contribute to missing orders? Supply Chain Disruptions Price influxes Urgent demands from key customers


We need better supply chain visibility Reduce loss sales and orders by detecting risks earlier Take preventative action early

CONCLUSION


ESTIMATING VALUE PROPOSITION How many total orders do we have? What’s the average order value? Total value Orders lost/late (%) Lost sales exposure ($) Total customers % Lost customer exposure (defections) Customer total (#) Average customer lifetime value Lost customer exposure ($)

100,000 orders / year $10,000 $1,000,000,000 12% $120,000,000 1500 3%-5% 45-75 $250,000 $11,250,000 to $18,750,000

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Overall risk exposure: $120 M lost deals and $18 M in lost customers


DEVELOP REQUIREMENTS


DISSEMINATIONSilo Eco-System

Siloed Users

Departmental Enterprise Supply Chain

Customers Who needs to have access to the information?

ANALYTICSHistoric

Future

Reporting(historic)

Analysis(historic)

Monitoring(current)

Predictive(future)

Prescriptive(future) How do they need to see it?

DATASimple Complex

SingleSource

Multi-Source

Data Cleansing

Real-time Big Data Where does the data came from?

COLLABORATIONNone Complete

Individual(on

demand)

Team/Group(ad-hoc)

E-mail(scheduled)

Alerts(eventsdriven)

IntegratedCollaboration(continuous) When do they need access to it?

What Business Problem is trying to be solved? Why is it important to the company? (expected outcome)

DEFINING THE SOLUTION TO THE PROBLEM


MORE BI VALUELESS BI VALUE

DATASimple

Complex

SingleSource

Multi-Source Data Cleansing

Real-time Big Data

ANALYTICSHistoric Future

Reporting(historic)

Analysis(historic)

Monitoring(current)

Predictive(future)

Prescriptive(future)

COLLABORATIONNone Complete

Individual(on demand)

Team/Group

(ad-hoc)

E-mail(scheduled)

Alerts(events driven)

IntegratedCollaboration(continuous)

DISSEMINATIONSilo Eco-System

Siloed Users Departmental Enterprise Supply Chain Customers

HALO Maturity Model ™Measure results from Marketing Automation Campaign

Predict next most likely product to purchase and optimize inventory levels

Provide insights into Financials

Improve and monitor Manufacturing processes

Assessing employee training programs

USING BI COMPONENTS TO SOLVE BUSINESS PROBLEMS


TYING DATA TO GOALS

Corporate Goals

Data Sources Data Sources

Has the problem been solved?Or did we exacerbate it?


Business Level Metrics (PI’s and RI’s)

Improve Customer Cervice

Increase Customer Retention Rate

• Faster problem solving• More Information online• Less Phone wait

Monthly Customer Churn Rate

• Target 24 hrs for resolution• 20% per month for 5 months• 2 minute average wait time

• Calculation from the CRM• Requires an inventory and plan• Intercept Phone System data

Corporate Goals

Critical Success Factors

Corporate KPIs and KRI’s

Business Processes

Data Sources


FINDING A SOLUTION“BUILD OR BUY?”


DIDN’T AX COME WITH BI?


OUT OF THE BOX AX CUBES

Pro’s– You already paid for it!– Several standard industry

KPI’s out of the box

Con’s – Poor for analytics – Reports are clustered/hard to navigate – Not user friendly – Challenging to modify

#AXUGSummit | #INreno15Microsoft Dynamics AX 2012 + AX 2012 R3 Microsoft Dynamics

20 PRE-DEFINED SSAS CUBES

Accounts Payable

Accounts Receivable

Environmental Sustainability

Expense Management

GeneralLedger Production

Purchase Sales and Marketing Sales

ProjectAccounting

Workflow

Budget Control

Budget Plan

InventoryValue

Retail

Human Resources

Payroll

Profit Tax Totals

Demand Forecast

Demand Forecast Accuracy


PUBLIC SECTOR

MANUFACTURING

ROLE CENTERS FOR PUBLIC SECTOR & COMMERCIAL

Operations Manager

Purchasing Manager

Purchasing Agent

Environmental MGR.

Production Manager

Shop Supervisor

Warehouse Manager

Shipping & Receiving

Warehouse Worker

Customer Service Operations Manager

EXECUTIVE FINANCE SALES & MARKETING

RETAIL SERVICES SECTOR

CEO

HUMAN RESOURCES

HR Manager

Staffing and Recruiting manager

Training and Development MGR.

CFO

Accountant

Accounting Manager

Accounts Payables Coordinator

Accounts Receivables Administrator

Budget Manager

Controller

Credit and Collections Manager

Treasurer

Sales and Marketing Executive

Account Manager

Dedicated Sales Representative

Marketing Manager

Marketing Staffer

Order Processor

Sales Manager

Super Sales Representative

Customer Service Representative

IT Manager

Merchandising MGR.

Operations MGR.

Store Inventory Clerk

Store Manager

Accountant

Practice Manager

Project Manager

Project Member

TEMPLATES

Role Center Template

Customer Self Service

Employee Self Service

Vendor Self ServiceAccounting Manager

Accounts Receivables Administrator

Finance Director


Improved insights with end-to-end support for key performance indicators (KPIs) and measurements

EXPLORE AND VISUALIZE DATA

Analyze dataon role center

Ad-hoc analysisfrom list pages


OData Provider Improvements provide Microsoft Dynamics AX data

EXPLORE DATA FROM VIRTUALLY ANYWHERE

Windows Azure™ Marketplace data sets

Powerful data mash up scenarios


CustomizeMicrosoft Dynamics AX 2012 R2

Configurable

Easy

Powerful

TAILOR TO YOUR NEEDS


EFFORTS TO GO LIVE

Requires investment into SQL BI or SQL Enterprise edition to use all the features

Many hours can be spent modifying and customizing the perspectives and cubes to reflect AX environment

Requires very disciplined deployment and customization to keep it clean


WHERE THE STANDARD CONTENT FALLS SHORT

Does not provide a single conformed view of company performance

Does not scale without custom development and intervention

Requires developers to perform most tasks Does not work with modern BI tools without rewrite

(Power BI)


WHERE THE STANDARD CONTENT FALLS SHORT

High levels of customization to default cubes becomes complex and failure prone

No clear roadmap for next AX version (poor investment)

Very complicated to modify 20 Cubes leads to confusion for end users


WHERE THE STANDARD CONTENT FAILS

High levels of AX customization AX Add-ons not included in AX cubes and role centers High levels of customization to default cubes becomes

complex and failure prone If you have multiple sources of data (Legacy apps, CRM) Predictive Analytics and Forecasting is weak to non-

existent


LET’S JUST BUILD IT!

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LET’S JUST BUILD IT

Pro’s– It’s custom, you build it the

way you want.– You ‘think’ it will be cheaper.

Con’s – Do you really know what you want?– Do you have the skillsets? (Nah, we are

going to just figure it out!”)– What if you lose that skillset? Do they

have time? – How are you handling documentation?

Compliance? – How are you addressing data quality?



Pro’s – Proven solutions with customers – Deeper integration (you would hope) – Dedicated Support

Con’s – “Another ISV” – “Perception of being more expensive”

LET’S BUY IT


RFP / Document Requirements and Vendor Responses Record demonstrations and key discussions Proof-of-Concept | “Try before you buy” References

– What were their goals? – Who’d they consider? – What would they do differently?– Do they really use every component of the solution?– If they didn’t buy this vendor, who would have been next?

VENDOR EVALUATION



Initiating

Planning

ExecutingMonitoring & Controlling

Closing


Formerly put the project to bed. Celebrate success

CLOSURE


LIVE FROM THE HOME OFFICE IN RENO…. TOP 10 REASONS BI IMPLEMENTATIONS FAIL10. Lack of Executive Sponsorship 9. No Commitment from Business Owners 8. Silo’ed Teams 7. No Communication 6. Trying to Boil the Ocean 5. Not Being on the Same Page from Day 1 4. Only Reproducing What You Have 3. Waiting for it to be Perfect 2. No Data Validation 1. Lack of User Adoption

New processes and tools take time and effort. Without commitment of time, project will stall and

ultimately fail

The business must define the questions it needs answered. You don’t want to end up

with a lot of data that doesn’t help the business

One group can’t finish the task. The technical side must

understand what the business needs, and the

business must review what is implemented

Communication is vital. If issues aren’t brought up and

addressed early they will only get worse

Monolithic projects fail. Define phases and demonstrate

ROI quickly

If everyone thinks you’re building something different, no one gets what they want. Get everyone

together to review the project goals at the start of the project. Have periodic

review meetings.

What’s the value in doing the same thing? BI can provide

valuable insights, and requires thought. Start with what you have, but expand

on it.

Everyone is anxious to see…. something. Get an initial version complete and in front of users. Get their

feedback and iterate.

First impressions are important. Enlist the help of “friendly”

people from other departments to help you

validate data. It takes some time, but it’s vital to get this

right. And having people from other departments helps

avoid…

If you build it, they will come… you hope. Make the

information relevant, and consider a beta group to

help spread the word.


CONTACT US

Brandon KirbyVice President

[email protected]

BrandKirby

Jeremy KingryBI Practice [email protected]

Jeremy_Kingry

Software

Dynamic AX: "Is your company really ready for BI?"